The pair is at a very important area of resistance from where it has bounced in the past (green circles) and has failed to break it in all 4 occasions that has tried. It has also entered overbought territory. Furthermore, in that bullish movement seen the last few days, the support area at 14.6 has not been restested and that is a major support.
Lets look at the 4H chart:
We see a few things that give me if not huge bearish signals, a very good R:R ratio :
1) Huge RSI divergence ( marked by purple lines )
2) Price at area of resistance and looking like a triple top
3) After the clean move up yesterday there is no support at all until the 15.12 area where the MA50 will come into play
4) Doji on the last 4H candle what means indecision
5) Once we hit MA50 we will monitor how the pair reacts
How am I planning to play this trade?
I am looking at a very aggressive entry on the H1 chart:
We see that the pair has failed to break the resistance recently in multiple occasions (green circles) and the last attempt was very weak. I am looking to entry when that minor area of support at 15.3577 is broken with a SL just above the highs.
Profit Targets will be the MA50 on 4H at around 15.12 and the main support at 14.6
Trade safe!
Lets look at the 4H chart:
1) Huge RSI divergence ( marked by purple lines )
2) Price at area of resistance and looking like a triple top
3) After the clean move up yesterday there is no support at all until the 15.12 area where the MA50 will come into play
4) Doji on the last 4H candle what means indecision
5) Once we hit MA50 we will monitor how the pair reacts
How am I planning to play this trade?
I am looking at a very aggressive entry on the H1 chart:
Profit Targets will be the MA50 on 4H at around 15.12 and the main support at 14.6
Trade safe!
Trade active:
Trade active and working well so far. Now just waiting for the reversal to make me swallow my own words.....
